Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 1211 - Nonresident Income Reciprocity with Wisconsin
 
Author: Senator Jeremy R. Miller
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 13, 2015



 

This bill modifies the terms of a reciprocity agreement with Wisconsin and requires the commissioner of revenue to enter into a reciprocity agreement if Wisconsin agrees to the definition of “net revenue loss” proposed in the bill.  Under legislation passed in 2014, the commissioner was authorized to enter into an agreement with Wisconsin wherein Minnesota could agree to accept $1 million less than the total amount of Minnesota’s net revenue loss, if the agreement was entered into before October 1, 2014.  For agreements entered into after that date, the agreement must reflect the full net revenue loss.  This bill is effective the day following final enactment and would be in effect beginning in tax year 2015. 

Section

Provision

 1

Strikes language allowing a determination of whether a reciprocity interest is in the best interest of Minnesota.  Requires the commissioner of revenue to enter into a reciprocity agreement with Wisconsin if Wisconsin agrees with Minnesota’s proposed definition of “net revenue loss.”  Under current law, Minnesota’s net revenue loss is the amount of income tax revenue that Minnesota would forego by not taxing Wisconsin residents on income subject to reciprocity, minus the credit for taxes paid to another state that would not be claimed by Minnesota residents working in Wisconsin.

Under the proposed definition in the bill, “net revenue loss” would be calculated as the income taxes that Minnesota would forego by not taxing Wisconsin residents on income subject to reciprocity, minus the cost of providing refundable credits to Wisconsin residents, minus the amount of revenue Wisconsin would forego by not taxing Minnesota residents on income subject to reciprocity.

 

 

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 03/13/2015
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn